Affordability, demographics drive apartments’ popularity

The growing love affair with apartment living is driven by is being two key factors – affordability and demographics.

For many young property buyers, flats are an affordable entry point into the property market, especially in the boom markets of Sydney and Melbourne.

Renting an apartment is also more affordable than renting a house, and this economic reality has resulted in a growing number of property investors buying off-the-plan units because they know there will be a strong rental demand.

Demographic changes are also driving the growing popularity of apartments. For instance, there has been a rise of people living alone, while the overall sizes of households are getting smaller.

At the same time, the ageing population is resulting in a surge of Baby Boomers and empty-nesters selling their large family homes and downsizing to an apartment, using the profits to fund their retirement.

These affordability and demographic factors have resulted in apartment living growing in areas that previously showed resistance to this style of living. For many years, homes with large backyards dominated the Perth property market. This is now rapidly changing, with apartment developments expanding beyond the CBD to the outer suburbs such as Joondalup, Clarkson, Midland, Armadale and Rockingham.

Buying an apartment can be a great lifestyle choice and can achieve significant capital growth, providing the buyer undertakes research by avoiding the following pitfalls: